• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Case Study Timmings plc, a small engineering firm.

Extracts from this document...

Introduction

Pg. 529 Case Study: Timmings plc (a) Using the case as an example, explain what is meant by 'increasing the scale of operations'. By 'increasing the scale of operations' it is meant that it increases the variety of jobs (operations) it does. For example with Timmings plc, it started as a small engineering company, it repaired agricultural implements for farmers in Hereford and Worcestershire. Now it has a full line of skid steer and mini skid loaders as well as attachments, mobile screening plants and six models of mini excavators and it recently added a complete line of potato harvesting, irrigation and handling equipment, and now it manufactures and distributes worldwide. This is an example of increasing the scale of operations, as it started doing only one thing and now it does many more, so in needs more resources, but it produces much more output. ...read more.

Middle

Machinery is often more precise and consistent, but if it breaks down there would be huge delays and costs. I believe that Timmings plc changed to capital intensive, because in 2001 it began to experience problems in recruiting high quality engineers, and at the same time, the business was sold to a large US engineering company, so maybe (and most probably) the US company believed that it would be better to change to capital intensive. (4) (d) Describe two technical economies of scale that Timmings plc is likely to exploit. Technical economies arise because large plants are often more efficient. The capital costs and the running costs of the plants do not rise in proportion to their size. ...read more.

Conclusion

In 2001 Timmings plc changed to capital intensive production and spent $180 million on CNC machines and robots (as it already had difficulties recruiting high quality engineers). Two categories of robots were purchased by Timmings. Processing operation robots and assembly line robots. Some of the advantages of capital intensive production are that they are generally more cost effective if large quantities are produced, machinery is often more precise and consistent, its easier to manage than people and it can operate 24/7. This is good, as people are difficult to manage and cannot work without breaks and holidays. They need to be motivated to improve performance, and may go sick or leave suddenly. In my opinion the benefits of switching to capital intensive strategies outweigh the drawbacks; the only downside I can see is that 30 staff were laid off. (10) ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. The Main advantages and disadvantages of mixed economy system

    It is called "mixed" because it mixes ideas of a free market economy and a control by government. Actually this is a very unstable system, as the government always strives to have more control, while "representatives of a free market" or in other word businesses tend to get more freedom to gain more profit.

  2. Walt Disney: Case study

    New technologies for example the convergence of computing, connection, and entertainment apparatus, the dropping charges of apparatus integrating such technologies, and increased broadband internet pace and penetration have made the unauthorized digital making a duplicate and distribution of movies, TV productions and other creative works simpler and much quicker and enforcement of intellectual house privileges more challenging.

  1. New business plan

    This makes the restaurant easily accessible to our target market. To keep the originality of the restaurant, catering would only be allowed for certain functions that coincide with our theme and generally no take-away is provided since it is not in line with our strategic position - to provide a holistic eating experience to consumers.

  2. starting a small business

    What salon do you go to? Please state 5. Is the salon local? Yes No 6. Do you live in the following areas? Walthamstow Leyton Leytonstone Other 7. What do you get done the most from the salon? Please state 8. How much does it cost?

  1. In this paper, we will study the case of Intel, a semiconductor chip maker, ...

    SECTION GOALS Environment At the beginning of 2008, they set new five-year goals related to global-warning emissions, water use, waste reduction, recycling, and product energy efficiency: * Reduce water use per chip below 2007 levels by 2012. * Reduce absolute global-warning gas footprint by 20% by 2012 from 2007 levels.

  2. Chinese Law case - dangerous water heater in an apartment

    Second, because they had full civil capacity and this case happened on Friday night which is part of the weekend, however, school didn't have any conduct to due to this accident; thus the school (D1) shouldn't bear the responsibility. Third, the contract law the provisions of paragraph 1, article 10:

  1. Case Study of Reach Out, a business providing therapy to children with autism.

    Also production of these goods will require initial investment and this may take time to recover. 3. Economic recession ? In case of an economic recession, all donations may dry out. Charities are mainly run through donations and in an extreme case this may cause Reach Out to shut down.

  2. Questions on Globalisation and International Trade

    the fact that some 40 percent of the population is living in abject poverty will scare other companies away. Moreover, it is still not easy to run a company in India thanks to laws limiting everything from who can be fired to who can which products.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work